The Reserve Bank's continuing to change its approach to preventing risky lending. 

It's further easing loan-to-value-ratio restrictions, allowing banks to lend more money to low-deposit borrowers. 

It follows the roll-out of debt-to-income restrictions last year, restricting how much banks can lend to people who already have a lot of debt relative to their income. 

Squirrel Mortgages Chief Executive David Cunningham told Mike Hosking LVRs had been imperfect on their own. 

He says when property prices went up, it allowed banks to lend more, pushing up property prices further, with borrowers' incomes not factored in. 

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